Announced acceptance of FoundationOne® for Parallel Review
by FDA and CMS. If approved, FoundationOne could be the first
FDA-approved comprehensive genomic profiling (CGP) assay to
incorporate multiple companion diagnostics to support precision
medicine in oncology and would be offered as a covered benefit to
Medicare beneficiaries nationwide;

Published an additional 17 manuscripts in high-quality, peer-reviewed
journals and delivered six podium and poster presentations at various
medical and scientific meetings providing further evidence for the
clinical impact of integrating CGP into routine cancer care;

Expanded patient access to CGP through Palmetto, the Medicare
Administrative Contractor in North Carolina, who broadened a Local
Coverage Determination, covering CGP for all stage IIIB and IV
non-small cell lung cancer (NSCLC) patients at diagnosis by removing a
patient's smoking status as a coverage factor.

Foundation Medicine reported total revenue of $29.4 million in the third
quarter of 2016, compared to $25.4 million in the third quarter of 2015.
Revenue from biopharmaceutical partners grew 77% to $20.7 million in the
third quarter of 2016, compared to $11.7 million in the third quarter of
2015. The increase in revenue demonstrates the company's leading role in
molecular information and the value of this information in informing and
accelerating drug development for its oncology focused biopharmaceutical
customers.

Revenue from clinical testing in the third quarter of 2016 was $8.7
million, compared to $13.7 million in the third quarter of 2015. The
decrease was driven by various factors, the most significant of which
was the transition in-network with a large national payer for stage IV
NSCLC testing, which resulted in the termination of payments for testing
in other indications.

The company reported 11,627 clinical tests in the third quarter of 2016,
a 45% increase from the same quarter last year. This reported volume
number includes 9,398 FoundationOne tests, 1,325 FoundationOne Heme
tests and 904 FoundationACT™ tests.

The company's molecular information knowledgebase, FoundationCORE, grew
to nearly 100,000 patient cases at the end of the third quarter.
FoundationCORE is a unique asset and critical component of the value
that Foundation Medicine delivers to its biopharmaceutical and physician
customers. The increasing scale and breadth of this high quality,
clinically relevant oncology data set derived from the company's testing
platform continues to enhance clinical practice and help enable improved
outcomes for patients.

Total operating expenses for the third quarter of 2016 were
approximately $44.9 million compared with $35.6 million for the third
quarter of 2015. Net loss was approximately $31.3 million in the third
quarter of 2016, or a $0.90 loss per share. At September 30, 2016, the
company held approximately $167.9 million in cash, cash equivalents and
marketable securities.

Recent Enterprise Highlights

Announced a collaboration with Sarah Cannon Research Institute (SCRI)
in which SCRI will utilize Foundation Medicine's full suite of assays
to accelerate patient enrollment into clinical trials and facilitate
data sharing across its network in the U.S.

Announced the election of life sciences leader, Michael R. Dougherty,
to its Board of Directors and the Board's Audit Committee. Mr.
Dougherty joins as an independent director and fills an existing
vacancy on the Board.

2016 Outlook

Foundation Medicine's business and financial outlook for 2016 is the
following:

The company continues to expect 2016 revenue will be in the range of
$110 to $120 million.

The company is increasing the bottom-end of its clinical volume
guidance range and now expects to deliver between 40,000 and 41,000
FoundationOne and FoundationOne Heme clinical tests in 2016.

The company continues to expect operating expenses will be in the
range of $175 and $185 million.

Conference Call and Webcast Details

The company will conduct a conference call today, Wednesday, November 2nd
at 4:30 p.m. Eastern Time to discuss its financial performance for the
2016 third quarter and other business activities, including matters
related to future performance. To access the conference call via phone,
dial 1-855-420-0652 from the United States and Canada, or dial
1-484-365-2939 internationally, and for either number reference
Foundation Medicine and provide the passcode 96220274. Dial in
approximately ten minutes prior to the start of the call. The live,
listen-only webcast of the conference call may be accessed by visiting
the investors section of the company's website at investors.foundationmedicine.com.
A replay of the webcast will be available shortly after the conclusion
of the call and will be archived on the company's website for two weeks
following the call.

About Foundation Medicine

Foundation Medicine (NASDAQ:FMI) is a molecular information company
dedicated to a transformation in cancer care in which treatment is
informed by a deep understanding of the genomic changes that contribute
to each patient's unique cancer. The company offers a full suite of
comprehensive genomic profiling assays to identify the molecular
alterations in a patient's cancer and match them with relevant targeted
therapies, immunotherapies and clinical trials. Foundation Medicine's
molecular information platform aims to improve day-to-day care for
patients by serving the needs of clinicians, academic researchers and
drug developers to help advance the science of molecular medicine in
cancer. For more information, please visit http://www.FoundationMedicine.com
or follow Foundation Medicine on Twitter (@FoundationATCG).

Foundation Medicine® and FoundationOne®
are registered trademarks, and FoundationCORETM
and FoundationACTTM are trademarks, of
Foundation Medicine, Inc.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995,
including, but not limited to, statements regarding the benefits of our
products to clinicians, payers and biopharmaceutical companies in the
treatment of cancer and the recognition by physicians, payers and
patients of the differentiating characteristics of our tests; the number
of tests to be conducted, the generation of revenue, and the incurrence
of operating expenses in 2016, including any changes to earlier
guidance; expectations of continued growth or competitive
differentiation; any approval of FoundationOne as a medical device by
the FDA and any coverage decision by CMS; payer support for
comprehensive genomic profiling, including coverage decisions by
Medicare and third-party payers; the ability of FoundationOne to inform
therapeutic choices in acute myeloid leukemia, including leading to
physician-directed therapy changes and to improve patient outcomes; and
statements regarding the ability of FoundationOne and FoundationOne Heme
to identify and predict the likelihood of response to immunotherapies.All such forward-looking statements are based on management's current
expectations of future events and are subject to a number of risks and
uncertainties that could cause actual results to differ materially and
adversely from those set forth in or implied by such forward-looking
statements.These risks and uncertainties include the risks that
Foundation Medicine's test, revenue or operating expense projections may
turn out to be inaccurate because of the preliminary nature of the
forecasts; the company's products do not perform as expected; acceptance
into the Parallel Review process does not benefit the company; the
company's expectations and beliefs regarding the future conduct and
growth of Foundation Medicine's business are inaccurate; Foundation
Medicine is unable to secure additional coverage decisions, achieve
profitability, to compete successfully, to manage its growth, or to
develop its molecular information platform; the company's TMB and/or MSI
analyses do not perform as expected or the results thereof are not
widely accepted or useful in clinical practice; physicians may not be
able to obtain access to relevant targeted therapies, immunotherapies or
clinical trials matched to molecular findings identified by the company'stests as readily as expected; and the risks described under the
caption "Risk Factors" in Foundation Medicine's Quarterly Report on Form
10-K for the year ended December 31, 2015, which is on file with the
Securities and Exchange Commission, as well as other risks detailed in
Foundation Medicine's subsequent filings with the Securities and
Exchange Commission.All information in this press release is as
of the date of the release, and Foundation Medicine undertakes no duty
to update this information unless required by law.

FOUNDATION MEDICINE, INC.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share data)

(unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2016

2015

2016

2015

Revenue

$

29,426

$

25,399

$

88,041

$

67,152

Costs and expenses:

Cost of revenue

15,946

10,370

39,291

28,236

Selling and marketing

14,654

14,267

42,928

36,630

General and administrative

13,012

9,199

34,739

41,810

Research and development

17,238

12,174

49,194

31,118

Total costs and expenses

60,850

46,010

166,152

137,794

Loss from operations

(31,424

)

(20,611

)

(78,111

)

(70,642

)

Other income (expense):

Interest income

199

15

585

31

Interest expense

(57

)

—

(57

)

—

Total other income (expense)

142

15

528

31

Net loss

$

(31,282

)

$

(20,596

)

$

(77,583

)

$

(70,611

)

Net loss per common share applicable to common stockholders, basic
and diluted